What is Form 500 used for?

Form 500 documents taxpayer consent for a named recipient to obtain or discuss specified tax records. It clarifies scope and duration of disclosure and serves as the written record agencies require to release information to third parties.

Can I sign Form 500 electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA in states that adopted it. Verify whether the recipient tax authority accepts e-signatures and whether a consumer disclosure is required.

Who may sign on behalf of a taxpayer?

The taxpayer or a properly appointed representative (e.g., power of attorney) may sign. If an agent signs, include the agent's capacity and attach documentation proving authority to act on the taxpayer's behalf.

Is notarization required?

Notarization requirements vary by state and by the receiving agency. Some jurisdictions or institutions may request a notarized signature; check the authority's instructions before submitting to avoid rejection.

How do I revoke an authorization?

Revoke in writing and send to both the recipient and the tax authority; state the revocation effective date. Agencies typically act on revocations upon receipt, but previously disclosed records cannot be recalled.

How long should I keep the signed form?

Retain the signed authorization at least for the applicable tax record retention period. As a baseline, follow IRS guidance to keep records for a minimum of 3 years (IRC §6501(a)) and HIPAA records for 6 years where relevant.

Electronic Signature
Templates
Tax
Form 500 Authorization to Disclose Tax Information

Form 500 Authorization to Disclose Tax Information

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What the Form 500 Authorization to Disclose Tax Information Is

The Form 500 Authorization to Disclose Tax Information is a written authorization that permits a taxpayer to allow a third party—such as an accountant, attorney, lender, or government agency—to obtain or discuss the taxpayer's tax records with the issuing tax authority or the taxpayer's preparer. The form clarifies scope, duration, and recipient limits for disclosure and documents consent to share tax data. It is used to streamline information requests while specifying conditions and protections for personally identifiable tax information.

Why a Clear Authorization Benefits Taxpayers and Agents

A properly completed Form 500 reduces delays, documents consent for privacy compliance, and helps avoid repeated manual verifications when authorized representatives need tax records.

Who Typically Completes or Receives This Authorization

Typical users range from individual filers to businesses and their advisors who need official access to tax records.

Individual taxpayers authorizing CPAs, attorneys, or lenders to access federal or state tax transcripts.
Businesses or their controllers designating payroll firms, banks, or auditors to receive corporate tax information.
Tax professionals and third-party agents requesting written consent before contacting tax authorities on a client's behalf.

Stepwise: How to Complete Form 500 Correctly

Follow these steps in order to reduce errors and speed processing when authorizing tax disclosures.

01

Gather IDs: Collect taxpayer SSN/EIN and government ID before starting.
02

Specify Scope: List tax years and record types to be disclosed.
03

Confirm Recipient: Enter recipient name and contact information exactly.
04

Sign and Date: Signer signs, dates, and states capacity (e.g., agent or taxpayer).

Authorization Workflow: From Request to Release

Understanding each stage clarifies responsibilities and expected timing when a third party requests tax information.

Request Received: Third party asks the taxpayer for a signed authorization.
Authorization Completed: Taxpayer completes Form 500 and signs in the designated field.
Verification: Tax authority verifies identity and scope before releasing records.
Records Released: Authorized documents are sent to the named recipient per the scope.

How to Configure an Electronic Authorization Workflow

If using an electronic platform, set authentication and retention options to match legal and organizational requirements.

Field	Configuration
Signer Authentication	Email link, SMS code, or stronger MFA as required
Expiration	Set automatic expiry (e.g., 90 days) for stale authorizations
Notifications	Auto-notify sender and recipient on signing and completion
Audit Trail	Enable IP, timestamp, and action logging for compliance

Sharing and Platform Requirements for Electronic Submission

Choose a platform that supports secure delivery, strong authentication, and audit logging for disclosures.

Integrations: Salesforce, NetSuite, Google Workspace, Box
File Formats: PDF, DOCX, and secured exports
Authentication: Email, SMS, or multi-factor options

Timing Considerations and Typical Processing Windows

While Form 500 itself usually has no statutory filing deadline, timely completion and verification shorten response times and help avoid administrative delays.

Provide on Request:

Deliver signed authorization promptly when an authorized requester asks.

Verification Time:

Tax authorities typically require 5–15 business days for validation.

Expiration Window:

Use an explicit expiration (e.g., 90 days) to limit ongoing access.

Revocation Notice:

Revocations should be submitted in writing and act upon receipt.

Record Retention:

Keep a copy for the retention period applicable to tax records.

Key Milestones from Request to Release

These sequential milestones illustrate the typical lifecycle of an authorization request and release process.

01

Request Submitted

Requester asks the taxpayer for a signed authorization.

02

Authorization Signed

Taxpayer signs and returns the completed Form 500.

03

Identity Verified

Agency confirms identity and matches scope to request.

04

Disclosure Completed

Records are released and confirmation sent to parties.

Common Preparation Mistakes That Cause Delays

Leaving the Authorized Recipient vague results in agencies refusing to release information; always use full legal names and contact details.
Entering an incorrect SSN or EIN causes verification failures and can trigger backup withholding or require corrected paperwork.
Omitting signer capacity (e.g., 'power of attorney') leads to rejection when the signer is not the named taxpayer.
Not specifying a clear time range for records increases privacy risk and may prompt agencies to withhold unnecessary data.

Principal Risks and Possible Regulatory Consequences

Invalid Authorization: Disclosure may be unauthorized

Privacy Breach: HIPAA penalties possible (45 CFR §164.530(j))

IRS Penalties: Information return fines (IRC §6721) possible

Backup Withholding: 24% backup withholding may apply

Civil Liability: State damages and injunction risk

Data Security Risk: Breach fines and reputational harm

Security and Compliance Controls to Protect Disclosures

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Capture timestamps, IPs, and signer events

Regulatory Coverage: ESIGN, UETA, and 21 CFR support as applicable

HIPAA Support: BAA available where required

Certifications: SOC 2 Type II and ISO 27001 compliant

Accessibility: WCAG 2.0 Level AA support available

eSignature Platform Comparison for Executing Form 500

When choosing an eSignature provider consider starting price, trial availability, bulk send, audit trails, HIPAA support, and envelope or session caps.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Form 500

Answers to common questions about execution, e-signing, revocation, notarization, and retention for the Form 500 Authorization to Disclose Tax Information.

Need help? Contact support

What is Form 500 used for?
Form 500 documents taxpayer consent for a named recipient to obtain or discuss specified tax records. It clarifies scope and duration of disclosure and serves as the written record agencies require to release information to third parties.
Can I sign Form 500 electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA in states that adopted it. Verify whether the recipient tax authority accepts e-signatures and whether a consumer disclosure is required.
Who may sign on behalf of a taxpayer?
The taxpayer or a properly appointed representative (e.g., power of attorney) may sign. If an agent signs, include the agent's capacity and attach documentation proving authority to act on the taxpayer's behalf.
Is notarization required?
Notarization requirements vary by state and by the receiving agency. Some jurisdictions or institutions may request a notarized signature; check the authority's instructions before submitting to avoid rejection.
How do I revoke an authorization?
Revoke in writing and send to both the recipient and the tax authority; state the revocation effective date. Agencies typically act on revocations upon receipt, but previously disclosed records cannot be recalled.
How long should I keep the signed form?
Retain the signed authorization at least for the applicable tax record retention period. As a baseline, follow IRS guidance to keep records for a minimum of 3 years (IRC §6501(a)) and HIPAA records for 6 years where relevant.

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